INDEX TO PRO FORMA FINANCIAL STATEMENTS
   Pro Forma Consolidated Balance Sheet as of December 31, 2010 (Unaudited)
    
    
    3Pro Forma Consolidated Statement of Operations for the year ended December 31, 2010 (Unaudited)
    
    
    4Notes to Pro Forma Consolidated Financial Statements (Unaudited)
    
    
    5




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CAREY WATERMARK INVESTORS INCORPORATED
    2




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CAREY WATERMARK INVESTORS INCORPORATED
 PRO FORMA CONSOLIDATED BALANCE SHEET
December 31, 2010
(Unaudited)
 Pro FormaHistorical
    
    
    Adjustments
    
    
    Pro FormaAssetsCash and cash equivalents
    
    $
    332,989
    
    
    
    17,119,003
    A
    
    $
    667,7004,000,000
    B(20,784,292
    )CEquity investments in real estate
    
    
    
    
    
    
    20,784,292
    C
    
    
    20,784,292Other assets, net
    
    
    
    
    
    
    6,673
    A
    
    
    6,673Total assets
    
    $
    332,989
    
    
    $
    21,125,676
    
    
    $
    21,458,665Liabilities and EquityLiabilities:Accounts payable, accrued expenses and other liabilities
    
    $
    190,752
    
    
    
    
    
    
    $
    190,752Due to affiliates
    
    
    45,500
    
    
    
    210,682
    A
    
    
    4,256,1824,000,000
    BTotal liabilities
    
    
    236,252
    
    
    
    4,210,682
    
    
    
    4,446,934Commitments and contingenciesEquity:Common stock
    
    
    23
    
    
    
    1,894
    A
    
    
    1,917Additional paid-in capital
    
    
    208,977
    
    
    
    16,913,100
    A
    
    
    17,122,077Accumulated deficit
    
    
    (297,888
    )
    
    
    
    
    
    
    (297,888
    )Total Carey Watermark Investors Incorporated shareholders equity
    
    
    (88,888
    )
    
    
    16,914,994
    
    
    
    16,826,106Noncontrolling interest
    
    
    185,625
    
    
    
    
    
    
    
    185,625Total equity
    
    
    96,737
    
    
    
    16,914,994
    
    
    
    17,011,731Total liabilities and equity
    
    $
    332,989
    
    
    $
    21,125,676
    
    
    $
    21,458,665
   3




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CAREY WATERMARK INVESTORS INCORPORATED
 PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
 For the year ended December 31, 2010
 (Unaudited)
 Pro FormaHistorical
    
    
    Adjustments
    
    
    Pro FormaOperating ExpensesGeneral and administrative
    
    $
    (297,551
    )
    
    $
    
    
    
    $
    (297,551
    )Property expenses
    
    
    
    
    
    
    (211,587
    )B
    
    
    (211,587
    )(297,551
    )
    
    
    (211,587
    )
    
    
    (509,138
    )Other Income and ExpensesIncome from equity investments in real estate
    
    
    
    
    
    
    
    C
    
    
    Interest expense
    
    
    
    
    
    
    (111,000
    )B
    
    
    (111,000
    )Net loss
    
    
    (297,551
    )
    
    
    (322,587
    )
    
    
    (620,138
    )Weighted average shares outstanding
    
    
    9,402
    
    
    
    1,893,888
    A
    
    
    1,903,290Loss per share
    
    $
    (31.65
    )
    
    
    
    
    
    $
    (0.33
    )
   4




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CAREY WATERMARK INVESTORS INCORPORATED
 NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 Note 1. Basis of Presentation
  Note 2. Pro Forma Adjustments
 A. Fundraising
  B. Transactions with the Advisor
   C. Investment
    5